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Exhibit 1.1 Rye BreadWhite Buns Daily Demand2400900 Baking Time per Batch4015 Capacity in a Batch31 Selling Price3.293.09 Loaves in a BatchDozens per Batch12045 Sales per
Exhibit 1.1 Rye BreadWhite Buns Daily Demand2400900 Baking Time per Batch4015 Capacity in a Batch31 Selling Price3.293.09 Loaves in a Batch\Dozens per Batch12045 Sales per Batch394.8139.05 Less: Variable Costs-200.64-38.75 Contribution Margin/Batch194.16100.3 Baking Time per Batch (Minutes)4015 # of Batches baked in Capacity31 Contribution Margin/Minute$14.56 $6.69 Maximum Oven Capacity (minutes)960 Demand (Rye Bread)2400 Number of Batches Required60 Total # of Batches20 Baking time for batches (minutes)40 Total Time to be allocated to for Rye Breads (m800 Total time left for the White Buns160 Baking time for batches (minutes) (White Buns15 Total Number of Batches10.67 Total Number of Batches Possible10 Total Demand900 Total Produced450 Unfulfilled Demand450Purpose:To calculate the optimal product mix and investment in new oven
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